by Kevin Cummer, TruStage® Product Manager, CUNA Mutual Group
Here’s a fact that might surprise you: Nearly half of U.S. adults—46%—don’t have life insurance. And many don’t have accidental death and dismemberment (AD&D) protection, which can either complement a life insurance policy or be an alternative resource depending on a member’s family and financial situation.
These stats mean a large portion of your credit union members likely doesn’t have the critical coverage that could protect the financial wellbeing of themselves or their loved ones, in the event of a tragic injury or death. What could happen to members who are already struggling with the uncertainty and financial stress of the pandemic if they were to lose their household’s primary source of income?
Why don’t members have these types of protection?
Misperceptions are common. For instance, consumers tend to overestimate the cost of life insurance—half of them think life insurance is three times more expensive than it actually is. Many worry they’ll have to pass a medical exam and fear they’ll fail. Others find the product and industry terminology confusing and overwhelming.
When it comes to AD&D coverage, people tend to underestimate their risk. Many believe AD&D is only important for someone with a physically dangerous job—and with 71% of all non-farm payroll employees in the service sector, most don’t fall into this category. They might be inclined to reconsider if they knew there’s been a 99% jump in injury-related casualties over the last 27 years and that accidents are the top cause of death for people aged 25-44.
In both cases, it could be a matter of avoiding unpleasant topics: Who wants to acknowledge the possibility of dying or being seriously hurt?
Three ways to drive member uptake and meet a critical member need
Here’s how you can help members understand why these types of protection are critical and why your credit union is their best resource.
1. Educate members through every channel. As discussed above, members likely have a range of concerns and misunderstandings about life and AD&D insurance. Use every channel possible—direct mail, web, mobile, social media and licensed call centers—to help set the record straight.
2. Deliver the protection they need. No one product will meet the needs of every member. Do the following to help the broadest range of members get critical coverage:
3. Provide a hassle-free, member-centric process. Members have a variety of concerns and misconceptions about these types of insurance. To help alleviate their worries, choose a provider that offers the following:
Life insurance and AD&D can deliver critical peace of mind to your members. Now, perhaps more than any time in recent years, it’s critical to ensure they have access to affordable, member-centric coverage. With the right partner, you’ll be able to provide the member-first protection and process they need.
For more information on TruStage® Life and AD&D Insurance, visit: https://www.cunamutual.com/products/trustage-insurance-program.
CUNA Mutual Group (CMG) is DakCU’s System Partner and is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wisconsin. CMG is a financially strong insurance and investment company. For generations, they have partnered with credit union leaders to protect and grow their businesses; and help people plan, protect and invest for their future. CMG offers commercial and personal insurance products; lending and payment security solutions; and retirement, investment, data and analytics, and marketing services. Please contact George McDonald, DakCU’s Chief Officer of Strategic Services for more information.
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